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Custom line lets Gatorade sprint to market

Effective use of resources gives Gatorade Canada a new product just in time for the summer selling season.

Gatorade Kids Pack uses a colorful six-color printed shrink film for both the front and back panels, including distortion-printi
Gatorade Kids Pack uses a colorful six-color printed shrink film for both the front and back panels, including distortion-printi

Gatorade is designed to appeal to athletes who can run fast or make quick moves. Quick moves are rarely the province of major manufacturers such as Quaker/Tropicana/Gatorade, the Peterborough, Ontario, Canada-based division of Quaker Oats Co. In bringing its new Kids Pack to market, QTG has shown it learned a few quick cuts, perhaps from Toronto’s NBA star Vince Carter.

The pivot man in the Kids Pack project was QTG’s Mark Knechtel, manager of the supply chain for beverages. “The supply chain that I look after had been challenged,” he told Packaging World. “Marketing had a concept they wanted to bring out, so we found a group of partners that played a great role in making the Kids Pack a big success.”

The partners Knechtel is referring to include Over The Rainbow Packaging Services (Brampton, Ontario, Canada), a repackaging company; Damark Packaging (Scarborough, Ontario, Canada), which engineered and built a first-of-its-kind shrink wrapping line with print registration; film supplier Pliant Corp. (Schaumburg, IL); and converter Custom Medallion (Mississauga, Ontario, Canada). What made this effort so unusual is that it had to be ready for production in just four months!

The Kids Pack is an unsupported, shrink-wrapped six-pack of 12-oz (355 mL) PET bottles of Gatorade in either Fruit Punch or Cool Blue Raspberry flavors. While Gatorade’s traditional target market is young men aged 18 to 24, Kids Pack is geared for younger consumers. The new multipack was designed to introduce the product to children as young as six years old. “This is a strategic play to keep the isotonic category expanding and growing,” Knechtel says.

“If we were going to produce three to four million cases per year, we would have bought a bigger system,” he says. “For the Kids Pack launch with its smaller volume, what we had to do was get really creative.”

Outsourcing all production

In the end, QTG purchased a complete new shrink-wrapping line from Damark that was installed at and is operated by Over The Rainbow (OTR). At the time, OTR had no other use for this line, beyond the Kids Pack. “The machinery would be exclusive to our product. So we felt we had to make the capital investment,” Knechtel says. “The other issue was timing. We took a bit of a risk, not knowing how well this product would sell.”

Knechtel explains how the Damark equipment was selected: “We looked at competitive bundling equipment from other manufacturers, and most would have cost us many times what the Damark system costs. I don’t think any company could get that kind of capital investment approved for a project that, at that time, had volume projections that weren’t huge,” Knechtel recalls.

“Once we looked into this and discovered that Damark could do this, the time constraints made us move quickly. We got our approvals very quickly,” Knechtel says.

Or as Damark’s general manager Bill Steel remembers: “I couldn’t believe it! When you deal with big companies, you expect delays. I sent Mark a quote on a Friday afternoon,” Steel says, “and I got an e-mail back on Sunday saying the deposit check would be cut Monday with the purchase order.”

Obviously, Damark had persuaded QTG that their equipment could do the job it wanted for OTR. “When we took on this assignment, we were about 60-percent sure the print registration system would work,” Steel says. “Generally, when you’re talking about print registration on a shrink wrapper like this, you’re looking at a machine that costs $160ꯠ or more.” He adds that this complete line was installed for about $55ꯠ, but he concedes that this line isn’t designed to pack at 50/min like some others.

12/min operating speed

That’s borne out by OTR, which indicates that normal operating speeds are about 12 packs/min, although additional capacity is built in. But output isn’t really the issue.

The repackager has been a supplier to QTG for several years, producing the Gatorade Rainbow Pack: seven flavors in a 24-ct tray of 20-oz bottles for club stores. “Using Over The Rainbow was an obvious choice to keep costs down while bringing the concept to market quickly,” Knechtel says.

In operation, OTR workers manually unpack bottles of Gatorade from shrink-wrapped, half-height corrugated trays and deposit them on the 8’-long, right-angle infeed of the Damark Model B24-90 sleeve wrapper. The infeed conveyor carries the bottles in two lanes to the collator section. Once two rows of three bottles are positioned, a sensor triggers the pusher block and activates the wrapper. A pusher block pushes the six bottles onto the conveyor that carries them into and through a curtain of film from two rolls, one printed roll above and an unprinted roll below.

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